KAMU HARCAMALARININ EKONOMİK BÜYÜME VE ENFLASYONA ETKİSİ: 28 OECD ÜLKESİ İÇİN BİR PANEL VERİ ANALİZİ
EFFECTS ON PUBLIC SPENDING ON ECONOMIC GROWTH AND INFLATION: A PANEL DATA ANALYSIS FOR 28 OECD COUNTRIES

Summary/Abstract: While increasing in public spending has increased economic growth more with compared to spending according to Keynesian approach, increasing in economic growth has increased public spending more with compared to it according to Wagner hypothesis. On the other hand, increasing public spending is seen as a reason for inflation in a short period, it evaluates the relationship between public spending and inflation with the Patinkin effect. The aim of this study is to test public spending effects on economic growth and inflation for the period of 1995-2008 in 28 OECD countries with panel data analysis. Through this direction, first it tested the stationary of series and it implemented first generation panel unit root tests to series as ignoring horizontal section dependence. However, it did not pass the cointegration test which gives long period relations since the results of all series were stationary. It is implemented on these series Granger causality and VAR analysis instead of cointegration test. It determined a one way relation through public spending according to Granger causality and it is determined that Wagner hypothesis is valid. At the same time, it determined that the Patinkin effect is valid because of determining bidirectional relationship between public spending and inflation. Moreover, it is determined that while there is a positive relationship between public spending and economic growth, there is a negative relationship between public spending and inflation according to VAR analysis results.

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